b'24American Journal ofTransportation ajot.com(RESURGENCEcontin- theBidenadministrationsprofitandusebyownersChina toward economic recov- agriculturalproducts.More ued from page 14) steel policy which was verywhen needed. ery,thangovernmentcon- recent regulatory decisionsThe business is doing wellhelpful to the steel industry.AJOT: Given the delicatestructionprojectsthatwillsuchasrestrictionsonsales and the main shippers ChiquitaThetariffs,hesaid,wouldand expensive nature of yachtgeneratemoredebt.Butaof advanced chips, tax cred-and Del Monte are in a goodcontribute to a level-playingtransport is there any specialcombinationofstructuralits for North American-made place, Decas said.field.I am confident that itinsurance for the moves?and policy impediments andsolar panels/electric vehicles (theadministrationspolicy)Dmitry Faber: All Cargowary consumers may prevent/semiconductorsandlegis-s horep owere leCtrifiCation ishelpingstrengthenourRisk Marine Insurance pro- thatfromhappening.Thatlationaimedatimproving The port recently receivedindustryandcreatingwell- vided by British or Germanallspellstroubleaheadforsupplychaintransparency, agrantfor$10.5milliontopaying steel jobs, he said. syndicatesisamustasitthe Chinese economy and itsetc.willcontinuetopull provide shore power electri- Separately,steelexecu- coversallrisksfromslingshousingsectoraswellasmanufacturing supply chains fication for ships so they cantives met at the annual con- toslingswhiletheyachtisfor steel industry demand andforhigh-valuegoodscloser turn off their engines and notferenceofmembersofthebeingloaded,shipped,andproduction. to U.S. consumers.generateemissionsburningSMA,andtheMetalsSer- offloadedfromcargoves-bunkerfuel:SowewillbeviceCenterInstituteheldsels.Thetypicalcosttoa utosd riVingn earshoringelectrifying our North TerminalunderthesloganBuildinganowneris0.25%ofthe(DEMANDcontinuedTheautomanufacturing andcome 2025, if we getthe World Together in Wash- yachts insured value +/- forfrom page 22) isthemajorbusinessdriv-the lead times on ordering allington.Politicians, includingthe policy. Eveninthefaceofuncer- ingnearshoring.According the equipment, we will be fullytheU.S.TradeRepresen- AJOT:COVID-19dras- tain economic conditions andtothePrologisstudy,every plug in capable at every termi- tativeKatherineTai,alsotically disrupted global supplystabilized port volume, usersUS$1billioninvestedin nal at the Port of Hueneme. attendedtheevent;inherchains.Howdidthepan- continue to target the submar- Mexicanautofactoriescan address, Tai outlined to thedemic effect the yacht trans- kets near the ports for reloca- generate5-10MSF(mil-audience, who included topport sector? tion and expansion.lionsquarefeet)oflocal (STAGEcontinued fromsteelexecutives,theprin- Dmitry Faber: It slowedBut will simmering mar- logisticsdemand.Thereal page 14) ciples that guide her whiledown for about 8 months askets heat up or cool down inestate company explains the aredemandingcleanerandnegotiating trade deals likewelostmarinasandinfra- 2024? logicbehindtheestimate, cleaner steels and wanting atheGlobalArrangementstructureinkeyareasandWell,atleastonegroupTheBajoregionincen-true net-zero product. onSteelandAluminium.tradeshowsclosed.How- believes that warehouse con- tral Mexico saw a four-time TopalianremindedofTai, who was introduced toever,itreboundedquicklystruction will again pickup inincrease in demand for logis-NucorsgreensteelofferingtheaudiencebytheNucorandnewordersforyachts2024.Inarecentreleasebytics space in 2014-2017, rela-Econia,launchedin2021;chairman/presidentLeonstarted flowing into builders.Interact Analysis, the researchtive to the 2010-2013 period, itdelivereditsfirstEconiaTopalian,satdownforanThe used yacht sales marketcompanysays,Renewedas several global auto compa-coiltoGeneralMotorsinexchangeofviewswithexploded as all yacht ownersE-commerce growth and shiftnies established new assem-2022, with the company nowSMA President Bell. figuredtheycouldusetheirtojust-in-casesupplychainsbly operations in the region. expectingtodelivermoreyachtswhennothingelseiswill drive an uptick in ware- Based on this, we [Prologis] than 1 million tons in the nextopenandtohaveautonomyhouse construction in 2024.estimatethateveryUS$1 12months.Demandforit(SPECIALIZEDcontin- tosailanywhereifapoca- InteractAnalysis,whichbillioninvestedinMexican was growing, he said, addingued from page 15) lypse happens. Or they madeproduces the Warehouse Build- autofactoriescangenerate thatwhilesteeluserskeptcustomliftplanandequip- moneyinthestockmarketingStockDatabaseexplained5-10MSFoflocallogistics demanding green steel, steelmentplan,gettingsameorelsewhereaftereconomythe logic behind the upbeat pre- demand during the two years producersweredemandingapprovedbyvesselowners,started coming back. diction is as follows, Interactthat follow. people who could make it.yacht owners and their archi- AJOT:ThereseemstoAnalysis delved deeper into theBut it isnt just the auto Whilemanyparticipantstects and all while trying tobeatrendtowardsbuildingdata to find that e-commerceindustry. Asmoremanufac-at the GSDF saying that supplymake it happen yesterday aslarger yachtsis that some- saleshaventinfactcometuring nearshores in Mexico, chainswerealmostbacktothe yacht was late to the Med. thingyouveexperienceddown despite seeing a declin- italsoattractssupporting normalintermsofactivity,AJOT: What is the aver- inyourbusiness?Whatareing share of e-commerce salesservices.Accordingtothe inventories,andseasonality,age cost of moving a yacht?someofthetrendsyouseeas a percentage of total retailPrologis report Tier 1 near-some felt that uncertainties inWhataresomeofthemainemerging in the sector? sales. This is interesting as itshoringannualabsorption boththegovernmentpolicyfactors? DmitryFaber:Weseesuggests that demand for ful- (direct manufacturing capac-andriskstherefromwouldDmitryFaber:Ratesthe trend for moving to renew- fillment capacity is likely toity expansions to supply the continue in the second half ofhadgoneupabout30-40%ableenergy,hybridmotors,grow at a similar rate to thatU.S., installed in leased logis-2023 as firms start to imple- since the pandemic and nowlargermodernyachtsandofpre-pandemiclevels.Thetics space) grew from 3 MSF ment long-term supply chainthereissometendencyofdesignsandevenartificialshift from just-in-time to just- in 2019 to 16 MSF in 2022, restructuring plans. ratesequalizing,mainlyintelligence(AI).Maritimein-casesupplychainswillincreasingfrom8%to26% Disruptionsduringtheduetoshiphireratessoar- industryisamazingandisalsohaveanimpactontheofgrossabsorptioninthe pandemicweremanifestedining during 2021-2022. As ofone of the oldest industries ingrowthofwarehousecon- country.Tier2nearshoring shortagesanddelayeddeliv- today,YachttransportMaththe world. It should be notedstruction.Manycompaniesabsorption (domestic suppli-eries of a wide array of goods101, you can say about 1,200that it is one of the most tra- now factor in a greater degreeersandthird-partylogistics madewithsteel,includingUSD per foot to the Med forditionalindustriesintermsofunpredictability,andthisprovidersthatspecializein homeappliances,televisionyachtsupto80LOAandofhowbusinessisdoneonhasaknock-oneffectonmanufacturingwarehousing) sets, furniture, machinery parts/ moreforheavyandsuperrelationships,andwestillwarehouse construction, withgrew from 15 MSF in 2019 components,etc.Thatcausedyachts. In North America andusetermslikesteamingcompaniesrequiringhigherto 29 MSF in 2022, or nearly disruptedshippingpatternsAsiacomingeastboundisand bunkering put in placeinventory and therefore morehalf of gross absorption.which,accordingtoshippingmore expensive as ships arewhen ships burned coal andstorage capacity. This is likely experts, now appear well on thestill full coming out of Asia.were steam powered. to drive an increase in ware- t heb eginning of at rend ?way to being corrected.We do have a crafty tool onhouseconstructionduringThePrologisstudysug-Some steel industry rep- ourwebsite:https://fmty- 2024 and 2025 gests that the logistics prop-resentativessaidtheywereachttransport.com/ where one(HEADWINDScontinuedertyboomsouthofthe followingthemovesmadecanenterrouteanddimen- from page 19) border, this is only the begin-by the EU and U.S. which aresionsandreceiveinstantbury the initiative at the first(NEARSHORINGcontin- ning of a much larger expan-in the process of negotiatingballparkquotewhichyachtsigns of worry from the party.ued from page 20) sion.Thereportcitesthe an agreement on tariffs to beowners appreciate. Instead,theywillhunkerAlthoughChinaoftenbuilding of new projects like applied on steel and aluminumAJOT: Besides the actualdown,savingyetmoreofgetstheprint,itisworthTeslas proposed plant which based on the greenhouse gastransportation of the yachts,their meager earnings for therememberingthatCanadawas announced last February emissions of production.Thewhatotherservicesareexpected hard times ahead. andMexicoaretheUnitedandotherhigh-valuesec-EuropeanCommission(EC)involved in the business?Xi,thereportcon- States largest trade partners,torssuchaselectronics, has indicated a deal could beDmitry Faber: Auxiliarycluded, will never allow aand business is growingitappliancesandgreentech-completed by October.Asianservices like crew delivery toconsumer-ledeconomytois this point that is the under- nologieshaveannounced steelrepresentativesatthe/ from vessel, transient berth- take hold on the mainland.lyingreasonforalogisticsexpansions in Mexico.GSDFwerealsocurioustoingwhileyachtswaitforSuchaneconomyrequiresrealestateboominMexicoTosumupthepros-know to what extent the lowstaging the few days waitingindividualautonomyandand along the US border. pects,PrologissaysGiven waterlevelsinthePanamafor the ship to come, shrink- freemarketstorespondtoAnd as Prologis explainsMexicos advantages of loca-Canalwererestrictingshipwrap,customsclearance,consumerdemand,whichthe US business with Mexicotion, free trade, and labor, we movements from Asia to thespecial protection for yachtstheChineseCommunistis set to expand as a result ofexpectfurtherinvestments Atlantic basin.gel coats, detailing are somePartyunderXihasbeenthenewregulatoryenviron- to continue to drive logistics Philipp Bell, the presidentofthefew.Alsocharteringincreasinglyunwillingtoment, Although U.S.-Chinarealestatedemandbecause oftheSteelManufacturersyachtsandofferingownersaccommodate. back-and-forthtariffswereittakestimeforsupply Association(SMA)toldtheto move their yachts to/fromAconsumer-centricstim- first applied in 2018, most ofchains to pivot in response to AmericanJournalofTrans- differentcruisinggroundsuluspackageislikelythethemwereappliedoncom- changing cost and regulatory portationthathesupportedwithpurposetocharterforbetteralternativetosteermodities, such as metals andframeworks'